Bioventus — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 worldwide revenue was $142.4 million, a 3% increase from $138.7 million in the prior-year period.
• Net income attributable to Bioventus Inc. was $6.0 million, compared to $3.2 million in the prior-year period.
• GAAP earnings per diluted share were $0.08, up from $0.05 in the prior-year period.
• Non-GAAP earnings per diluted share were $0.17, a 13% increase from $0.15 in the prior-year period, driven by lower interest expense.
• Adjusted EBITDA was $28.4 million, advancing 7% from $26.6 million in the prior-year period.
• Cash from operations totaled $20.7 million for the quarter.
• Gross profit was $97.1 million; Non-GAAP gross profit was $106.4 million with a Non-GAAP gross margin of 74.7% (vs. 75.2% in the prior year).
• Operating income was $9.7 million; Non-GAAP operating income was $23.4 million with a Non-GAAP operating margin of 16.4% (vs. 17.1% in the prior year).
• Interest expense, net, was $3.8 million for the quarter, down from $6.2 million in the prior-year period.
• As of September 26, 2026, total assets were $673.4 million and total liabilities were $381.6 million.
• Long-term debt (less current portion) was $211.1 million as of September 26, 2026, down from $279.0 million as of December 31, 2025.
• Cash and cash equivalents were $30.7 million as of September 26, 2026, down from $51.2 million as of December 31, 2025.

Guidance and Future Outlook:

• Reaffirmed Adjusted EPS guidance for the full year 2026 at $0.75 to $0.79 per diluted share.
• Updated Net Sales guidance for the full year 2026 to $590 million to $595 million, reflecting growth of approximately 4% to 5%.
• Presented Adjusted Cash from Operations guidance for the full year 2026 at $84 million to $89 million, excluding costs related to the review of potential strategic alternatives.
• The Company does not provide forward-looking U.S. GAAP financial measures other than net sales due to the uncertainty of strategic transaction-related expenses and accounting fair-value adjustments.

Business Segments and Product Lines:

• Pain Treatments: Revenue of $71.3 million increased 6.2% year-over-year, driven by strong volume growth in hyaluronic acid therapy products (Durolane), platelet-rich plasma (PRP) systems, and peripheral nerve stimulation (PNS) products.
• Surgical Solutions: Revenue of $50.5 million increased 0.7% year-over-year, driven by higher demand for Ultrasonics systems and disposables, partially offset by softness in Bone Graft Substitutes (BGS).
• Restorative Therapies: Revenue of $20.6 million decreased 3.4% year-over-year due to lower volume for the EXOGEN Bone Stimulation System.
• Geographic Performance:
  • U.S. revenue was $124.6 million, up 1.0%, driven by Pain Treatments and partially offset by softness in BGS.
  • International revenue was $17.8 million, up 16.4%, driven by strong volume growth in Pain Treatments (Durolane) and increased demand in Surgical Solutions (Ultrasonics).

Market and Competitive Landscape:

• The Company continues to review potential strategic alternatives to maximize shareholder value.
• The press release notes competition from other companies with longer operating histories, more established products, or greater resources.
• Risks include potential FDA reclassification of non-invasive bone growth stimulators (EXOGEN) and hyaluronic acid viscosupplements, which could increase competition or require costly additional clinical studies.

Risks and Challenges:

• The review of potential strategic alternatives could divert management attention, adversely affect customer retention, and incur significant costs.
• Regulatory risks include the FDA process, potential product reclassification, and the need to maintain regulatory clearances.
• Financial risks include the potential failure to meet debt covenants under the 2025 Credit Agreement, reliance on a limited number of products, and exposure to tariffs and trade barriers.
• Operational risks include supply chain disruptions, product quality issues, and the need to successfully commercialize new products.

Management Commentary and Tone:

• Rob Claypoole, President and CEO, described the results as "solid," highlighting strong gross margin, operating cash flow, and Adjusted EBITDA.
• Management expressed confidence in the underlying momentum of key growth drivers, the company's strategy, and its portfolio.
• The CEO stated the company remains confident in its ability to build Bioventus into a leading medtech company while continuing to explore strategic alternatives.

Other Key Points:

• Bioventus made a discretionary principal prepayment of $15.0 million on its term loan during the third quarter, funded by strong operating cash flows.
• Cash paid for the review of potential strategic alternatives was $0.4 million during both the three and nine months ended September 26, 2026.
• The Company acquired distribution rights for $1.5 million during the quarter.
• The Company does not provide U.S. GAAP financial measures on a forward-looking basis due to the inability to predict the impact of strategic transaction-related expenses and other reconciling items.